Merchants who accepted Visa, Mastercard, or Discover credit and debit cards may be eligible for compensation from two separate class action settlements related to interchange fees. These settlements address claims of anticompetitive practices and overcharged fees, with billions of dollars available for distribution to eligible businesses.

Visa and Mastercard Settlement Details

The Payment Card Interchange Fee Settlement stems from an antitrust lawsuit against Visa, Mastercard, and several major banks. The case focused on interchange fees charged to merchants for processing credit and debit card transactions, which merchants argued were excessively high and stifled competition. A settlement agreement was reached in 2012, with a final agreement receiving approval in 2019 after partial overturning and revision in subsequent years.

Visa, Mastercard, and the banks agreed to pay billions of dollars to compensate merchants who accepted Visa and Mastercard credit or debit cards between January 1, 2004, and January 25, 2019. The total amount available for distribution in this settlement is estimated to be $5.5 billion. In addition to monetary compensation, the settlement includes provisions requiring Visa and Mastercard to modify certain business practices to improve transparency and competition in the payment card industry.

Merchants who accepted Visa or Mastercard payments during the specified period are eligible to submit a claim, including both large retailers and small businesses. Previously, merchants seeking compensation had to provide processing statements, but this is no longer required. To submit a claim, merchants need to provide their taxpayer identification number and the name of the business that accepted credit cards during the affected period. A signed W-9 can serve as a "proof of authorization" document.

The class administrator will review the documentation and search records for the merchant’s interchange transaction fee information. Merchants will be notified via email once the review is complete. Additional taxpayer identification numbers can be added to an account once it is created, and the class administrator will attempt to search records for those as well.

The claim form can be submitted via the official court-authorized settlement website, paymentcardsettlement.com. Merchants should monitor their claim status through the settlement website or by contacting the settlement administrator. Once a claim is approved, the merchant will receive a payment from the settlement fund, with the amount varying based on factors such as transaction volume and the total number of claims submitted.

The claim submission deadline for the Visa and Mastercard settlement was extended by the court for 180 days as of August 8, making the new deadline Tuesday, February 4, 2025. Merchants who choose to opt out of the settlement will not receive compensation but retain the right to pursue separate legal action against Visa, Mastercard, or the involved banks.

Jonathan Corona, chief operating officer of MobiusPay, has two decades of experience in the electronic payments processing industry. His responsibilities include reviewing and advising merchants on compliance standards mandated by card associations, such as BRAM guidelines and chargeback compliance rules defined in Visa and Mastercard operating regulations.

Discover Settlement Opportunities

In a separate development, a $1.225 billion class action settlement has been established for merchants who accepted or processed Discover credit cards. This settlement, known as CAPP Inc., et al. v. Discover Bank et al., Case No. 1:23-CV-4676, is in progress in the U.S. District Court for the Northern District of Illinois.

Merchants who accepted or processed Discover credit cards between 2007 and 2023 may qualify to claim a cash payment from this settlement. The deadline to file a claim for the Discover settlement is May 18, 2026. Unlike the Visa and Mastercard settlement, proof of purchase is required for the Discover settlement. The potential individual reward for eligible merchants will vary.

This Discover settlement benefits end merchants, merchant acquirers, and payment intermediaries involved in processing or accepting Discover cards.

Claim Submission Guidance

For both settlements, merchants are the only party who can file a claim. Merchant services providers and payment processors are not involved in these lawsuits and cannot file claims on behalf of merchants. Merchants are encouraged to visit the official settlement websites for full details and to submit their claims. It is possible to submit a claim directly without incurring fees from third-party services that offer to do so.

Key Facts

  • The Visa and Mastercard settlement fund is estimated at $5.5 billion.
  • The Discover settlement fund totals $1.225 billion.
  • Visa and Mastercard claims cover transactions from January 1, 2004, to January 25, 2019.
  • Discover claims cover transactions from 2007 to 2023.
  • The deadline to file a claim for the Visa and Mastercard settlement is February 4, 2025.
  • The deadline to file a claim for the Discover settlement is May 18, 2026.
  • For the Visa and Mastercard settlement, merchants need to provide their taxpayer identification number and business name; processing statements are no longer required.
  • For the Discover settlement, proof of purchase is required.